Clearing the Air: The Birmingham Clean Air Zone
If you've driven inside the A4540 Middleway Ring road since June 1st 2021, you'll know all about Birmingham's Clean Air Zone (CAZ). Let's face it, we all have a right to breathe clean air. However, with urban populations (and their vehicles) continually rising, air pollution has become a critical issue in the UK.
To combat this, many local authorities are implementing Clean Air Zones, which restrict or penalise access to high-polluting vehicles. These zones are becoming more widespread across the country, and, at the time of writing (May 2023), England has seven in operation. These are in Bath, Birmingham, Bradford, Bristol, Portsmouth, Sheffield, and Tyneside (Newcastle & Gateshead). In addition, we also have the Ultra-Low Emission Zone (ULEZ) in London and the Zero Emission Zone (ZEZ) in Oxford.
In this blog, we'll explore Clean Air Zones and how businesses can mitigate their effect by transitioning to low and zero-emission vehicles. We'll also introduce you to Greenarc Vehicles, who are specialists in helping companies to select, fund, and manage their electric vehicle fleets.
What are Clean Air Zones?
Clean Air Zones are geographical areas where charges or restrictions are put in place to discourage high-polluting vehicles from entering. These zones aim to reduce air pollution by reducing the number of high-emission vehicles on the road. In the UK, the government has set targets for reducing air pollution, and Clean Air Zones are a crucial part of achieving these targets.
What charges are involved in Clean Air Zones?
Like all things, the simple answer isn't that simple as it depends on which class the local authority has designated the CAZ.
There are four classes, ranging from A to D.
Class A applies to buses, coaches, taxis, and private hire vehicles. Class B adds HGVs, Class C includes vans and minibuses, and Class D adds cars with the option to add motorbikes.
So, if you drive a private car, you're good in Class A, B, or C. However, for taxis, unfortunately, you're impacted in all classes of emissions zones.
Who has to pay the CAZ in Birmingham?
Birmingham has opted for a Class D CAZ without motorbikes. But it will only affect you if your vehicle doesn't meet these standards:
- Buses, coaches, and HGVs must meet the Euro VI emission standard.
- Vans, minibuses, taxis, private hire vehicles, and cars must meet either the Euro 6 standard if diesel or the Euro 4 standard if a petrol engine.
If you have to pay, it will cost you:
- £8 per day for cars, taxis and LGVs (large goods vehicles)
- £50 per day for coaches and HGVs (heavy goods vehicles)
Follow this link to check if your car is liable or not.
What's the long-term solution to paying CAZ charges?
The charges and restrictions vary between cities implementing Clean Air Zones. But, generally, low and zero-emission vehicles don't have to pay to enter. This means that electric vehicles are the best route forward for the future of transport.
Electric vehicles have zero emissions, are cheaper to run, and have lower maintenance costs than traditional petrol or diesel vehicles. So, by investing in electric vehicles, businesses can save money and help reduce air pollution.
But transitioning a whole business fleet to electric is an overwhelming task for some to even think about at the moment. The thought of the paperwork alone is enough to bring out business owners and fleet managers in a cold sweat.
So this is where Greenarc Vehicles comes in.
We are specialists in helping businesses select, fund, and manage their electric vehicle fleets. Greenarc offers services like vehicle rental, training, and salary exchange schemes. The salary exchange scheme is a fantastic way for employees to lease a brand-new EV at a lower cost. Employees can take advantage of electric vehicles' benefits without worrying about the high upfront costs.
What is a Salary Exchange Scheme?
A salary exchange scheme paired with an electric vehicle is a no-brainer for employers and employees looking to reduce their carbon footprint and save money on taxes. Employees can significantly reduce their income tax and National Insurance payments by agreeing to sacrifice a portion of their salary in exchange for leasing an electric car. And the company pays less NI as well.
While some may worry about additional tax implications of company cars, those days are long gone. The benefits of EV ownership far outweigh the minimal BiK (benefit-in-kind) tax incurred. With this in mind, it's clear why salary exchange schemes have become a popular option for those looking to save money, reduce pollution, and drive a sleek new set of wheels.
How does Greenarc SalEx work?
There are six key features of a salary exchange scheme:
- We lease an electric vehicle to your company
- Your employee exchanges part of their gross salary in return for the car, which includes maintenance and insurance
- Your employee saves on income tax and NIC, as the funds are deducted from their gross salary
- Your employee pays BiK tax on the company car (2% until 2025)
- Your employee saves far more in tax and NI than they pay in BiK
- Your company saves on NI contributions
What are the Benefits of Greenarc's SalEx Scheme?
Salary exchange schemes offer a unique way of rewarding your employees' dedication and hard work while reducing the Scope 1 and 3 environmental impacts of your business. Additionally, electric vehicles are cheaper to run than petrol or diesel models, so running costs are generally lower.
Interestingly, our clients report that the SalEx scheme is a massive hit with their staff and is helping them retain their existing teams and attract new people to their businesses.
But that's not all! With Greenarc SalEx, you can also take advantage of our expert advice on fleet management and cost savings. We have extensive knowledge of vehicle finance and leasing options to help you make the most out of our salary exchange scheme.
In summary, the rise of Clean Air Zones in the UK marks a significant step towards reducing air pollution and improving air quality. Change can be difficult, but by investing in electric vehicles and taking advantage of salary exchange schemes like the one offered by Greenarc, businesses can save money and help build a more sustainable future.
As Birmingham celebrates its Clean Air Zone, it's essential to remember that we all have a part to play in creating a cleaner, healthier future.
To learn more about our SalEx programme or electric vehicles for your business, please contact our team on 01772 737 383 or visit our website.